A Letter to Our Shareholders
In 2025, Graybar celebrated 100 years as an independent company and achieved record performance, outstanding shareholder returns and a major milestone in our business transformation. It was a pivotal year for the company; one that demonstrated the power of Graybar and what we can accomplish when we work together to reach our potential.
Last year, Graybar’s net sales grew 10.6% to a record $12.9 billion, while net income increased 2.0% to $431.4 million. Graybar has achieved record net sales in 13 of the past 14 years and historically high net income over the past five years. This speaks to our ability to drive growth in a way that keeps the company healthy for the long term. Our strong balance sheet allows us to reinvest in the business and pursue growth opportunities while providing shareholders with significant returns.
In 2025, Graybar also extended its five-year, $750 million revolving credit facility. This new facility matures in 2030 and supports the company’s general working capital needs and ongoing growth initiatives.
Thanks to Graybar’s record performance in 2025, shareholders received a 35% return on investment, comprised of $7.00 in cash dividends for the second consecutive year. Even more impressive, this marked four consecutive years when employee and retiree shareholders have earned a 35% return on their investment in Graybar. Also, eligible employees received a 15% contribution to the Profit Sharing and Savings Plan that was paid on April 1, 2026.
One of the keys to Graybar’s continued success is the strength and stability of our employee ownership culture. Last year, a high percentage of eligible employees participated in the company’s annual stock offer. Earlier this year, we successfully renewed the 2026 Voting Trust Agreement, which helps us preserve our unique culture for years to come.
In 2025, Graybar experienced strong demand for our products and services, driven by investment in areas such as data centers, electrification, grid modernization, broadband and utility expansion, and industrial automation. Graybar is also well positioned to capture opportunities tied to federal infrastructure funding and private sector investment in hyperscale computing and advanced manufacturing.
Because our logistics capabilities are central to our customer value proposition, we are investing in facilities and technologies to enhance the customer experience. For example, we introduced STAR Centers in 2025 to help contractors manage large, complex construction projects. STAR is an acronym for Storage, Transport, and Readiness, which describes how these facilities help ensure critical materials are ready, right where our customers need them. In 2026, we plan to open additional STAR Centers and service centers and expand several branches to support our customers’ growing needs.
Our subsidiaries also contributed to the company’s positive results through both organic growth and strategic acquisitions. In 2025, Advantage Industrial Automation acquired Orbit Motion Systems in January, and Valin Corporation acquired Burns Controls in July. These
businesses expand our capabilities and reinforce the important role subsidiaries play in Graybar’s overall success. We plan to continue pursuing acquisition opportunities in 2026.
One of the highlights of 2025 was the successful implementation of SAP S/4HANA, marking a major milestone in our Graybar Connect business transformation program. Over the past two years, employees from across the company have worked diligently to design, test and deploy the system, while also serving our customers and growing our business. It’s a remarkable achievement that lays the groundwork for Graybar Connect 2.0, which is focused on using artificial intelligence (AI) and advanced technology to develop innovative ways to serve customers and unlock our potential.
For the past 100 years, Graybar has built a reputation as one of the leading employee owned companies in North America thanks to the people who move our business forward – our employees and retirees.
As we advance the company’s ongoing transformation, we remain dedicated to our core values and to preparing our people for what’s next. This includes developing the next generation of leaders who will accelerate our performance and shape our future. Last year, we announced several leadership changes, detailed on the right. We also elected three new members to the company’s board of directors — Brian Delaney, Andy Ipson and Danna Stone — who champion our strategy and our employee ownership culture.
In April of this year, Dennis DeSousa retired as Chief of Staff and a member of Graybar’s Board of Directors. Dennis has played an integral role in our success over the years, and I want to thank Dennis for his outstanding leadership, incredible work ethic and passion for Graybar. We wish him all the best in retirement.
Throughout our history, Graybar employees have risen to every challenge and embraced opportunities to leave the company stronger for the next generation. Looking ahead, we are confident that our strategy – centered on long-term growth, ongoing business transformation and an unwavering commitment to our people – will take our company to new heights.
I want to thank you for your continued support and belief in Graybar. We should all be proud of what we accomplished in 2025. Together, we can do anything when we believe in each other, our company and our employee ownership culture.
Kathleen M. Mazzarella Chairman, President and CEO
Organizational Changes
Below is a summary of Graybar’s key organizational changes in 2025 and early 2026.
JUNE 2025
Larry Smith was named Pittsburgh District Vice President, replacing Scott Neubauer who retired after 39 years with the company.
JULY 2025
Ed Fenton was named Vice President – AI and Digital Transformation.
Jonathan Rayment was named Seattle District Vice President, replacing Steve Breeden who retired after 24 years with the company.
SEPTEMBER 2025
Brian Delaney was elected to Graybar’s Board of Directors. Brian serves as Senior Vice President – West Region and Subsidiaries.
Jeff Netherton was named Vice President –Strategy Realization.
NOVEMBER 2025
Andy Ipson was promoted to an expanded role of Senior Vice President – Sales and Service.
Jack Callen was named St. Louis District Vice President.
DECEMBER 2025
Andy Ipson was elected to Graybar’s Board of Directors. Andy serves as Senior Vice President – Sales and Service.
Danna Stone was elected to Graybar’s Board of Directors. Danna serves as Senior Vice President – Marketing.
JANUARY 2026
Ellen Rebne retired from her position of Senior Vice President – Sales after 36 years with the company.
Regis Ganley was named Vice President –Market Development.
Paul Steckler was named Vice President –Investment and Inventory Management.
Russell Wood was named Vice President –Category Management.
Kevin Zak was named Vice President –Industrial Automation Business.
MARCH2026
Najam Chohan was named Vice President –Strategic Pricing.
Paul Ferguson was named Vice President –Shared Services.
APRIL 2026
Dennis DeSousa retired from his position as Chief of Staff and as a member of Graybar’s Board of Directors.
TOTAL SHAREHOLDERS’ RETURN
The following graph shows a five-year comparison of cumulative total returns for the Company, the Standard and Poor’s 500 Composite Index, and the Dow Jones U.S. Electrical Components & Equipment Total Stock Market Index (index code DWCELQ).
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The comparison above assumes $100.00 invested on December 31, 2020 and reinvestment of dividends. The market value of the Company’s stock, in the absence of a
At Graybar, we know that long-term success begins with delivering an exceptional customer experience every day. We earn customers’ trust by executing the fundamentals consistently and honoring our commitments. We accelerate growth together through a spirit of collaboration and innovation. This is what builds lasting relationships and powers positive business performance.
Graybar strives to achieve profitable growth that sustains the company’s long-term health. Our growth strategy combines organic expansion in our core business with acquisitions that add capabilities, broaden our geographic reach and further diversify our company.
In 2025, Graybar’s net sales increased 10.6% to a record $12.9 billion and net income rose 2.0% to $431.4 million. The company achieved growth across all vertical markets last year, including construction, industrial and utility, and commercial, institutional and government (CIG).
Construction remains Graybar’s largest vertical market and a core source of strength for the company. Contractors depend on Graybar to provide the products and solutions they need to keep projects on track. Last year, tariffs and labor shortages affected project costs and timelines for contractors. This increased demand for Graybar’s service solutions that enhance jobsite productivity, minimize waste and reduce rework.
Contractor customers are also increasing their use of construction technology platforms to improve their ability to manage projects. Graybar already integrates with most industry-leading construction technology platforms. We plan to enhance our capabilities even further to help customers streamline construction processes and increase supply chain efficiency.
While construction remains our largest vertical, Graybar continues to expand its industrial business.
In 2025, Graybar ranked No. 14 on the 2025 Industrial Distribution Big 50 list of top North American industrial distributors, up two spots from our 2024 position. This marks Graybar’s fourth consecutive year on the list.
To accelerate growth in industrial automation, Graybar announced plans in late 2025 to expand this segment of the business. In early 2026, Kevin Zak was named Vice President – Industrial Automation to lead this strategy, which includes investing in additional resources and increasing alignment of our industrial automation subsidiaries.
Another area of focus last year was the rapidly growing data center market. Artificial intelligence (AI) has become a major driver of the U.S. economy, increasing demand for reliable power, connectivity and infrastructure. Graybar offers the breadth of products and services needed to support the construction and modernization of data centers of all types, from hyperscale facilities to private enterprise environments.
Graybar’s long-term growth strategy aligns with several megatrends that will shape the future of the industry. This includes electrification and energy transition, automation and AI, connectivity, mobility and infrastructure. Working alongside our trusted suppliers, Graybar is well positioned to help customers navigate these trends and sustain long-term growth.
In addition to organic growth, Graybar continues to expand through strategic acquisitions and opportunities. Graybar’s strong balance sheet provides the financial flexibility to add capabilities and expand our portfolio as opportunities arise.
Over the past decade, Graybar has acquired 20 companies, each aligned with our long-term growth strategy. Last year, Advantage Industrial Automation acquired Orbit Motion Systems in January, and Valin Corporation acquired Burns Controls in July. In March of this year, Graybar acquired Broken Arrow Electric Supply. We are excited to welcome these businesses and their employees to Graybar, and we are confident they will play an important role in the company’s ongoing success.
TRANSFORMING TODAY. SHAPING TOMORROW.
As the world around us moves faster than ever, Graybar is making strategic investments to keep our company relevant, strong and growing. That commitment led to the launch of Graybar Connect, a multi-year business transformation program.
Graybar Connect was designed to introduce new technologies, streamline business processes and implement faster, easier ways to get work done, all with the goal of positioning the company for long-term success while sustaining our employee ownership culture.
The first phase of Graybar Connect focused on implementing SAP S/4HANA as the company’s new ERP system, replacing SAP ECC, and launching Master Data Governance. Thanks to the dedication and hard work of employees across the organization, Graybar maintained high service levels and consistent operations throughout the transition.
With this technology in place, we now have a solid data and technology foundation to support the next phase of our transformation – Graybar Connect 2.0. This phase emphasizes enhancing our operating model and expanding our capabilities to increasingly leverage the power of AI.
Graybar recognizes AI as a powerful enabler of productivity, growth and innovation. To lead this strategy, Ed Fenton was named Vice President – Artificial Intelligence and Digital Transformation in July of 2025. Under Ed’s leadership, Graybar is piloting and deploying AI across the business to unlock new levels of efficiency and performance. Initial efforts focus on automating manual tasks, accelerating response times and improving accuracy for quotes, order entry and customer requests.
By handling routine, time-consuming tasks, AI allows employees to concentrate on high-value sales and service opportunities that strengthen relationships and fuel growth.
Looking ahead, Graybar is exploring additional AI use cases and adapting our operating model to unlock the potential of both the technology and the employees who are so vital to the company’s success.
Graybar is also transforming its logistics and supply chain capabilities to provide an unrivaled customer experience across North America. In September of 2025, Graybar announced plans to significantly increase warehouse capacity across several high growth U.S. metropolitan areas by introducing project-focused STAR distribution centers.
STAR—an acronym for Storage, Transport, and Readiness— centers, will bring critical materials closer to the job site and enhance Graybar’s ability to deploy labor-saving services and customized delivery options to keep large, complex construction projects on schedule.
Last year, Graybar opened STAR Centers in Reno, Nev., Dallas, Texas, Atlanta, Ga., and Columbus, Ohio. The company plans to open additional STAR Centers in 2026.
Beyond STAR Centers, Graybar plans to open two new service centers and expand or relocate several branches in 2026. In total, these expansion efforts will increase our facility footprint to more than 16 million square feet of space.
Our logistics network is enabled with leading technology to enhance safety and efficiency. In our service centers, Graybar has implemented autonomous floor scrubbers and automated cycle counting that can scan the entire warehouse and provide AI-driven insights. As we look to the future, Graybar will continue to explore new technologies and tools that automate our operations and raise the bar on our service capabilities.
POWERED BY OUR PEOPLE. DRIVEN BY OUR PURPOSE.
Employee ownership is the heart and soul of our company. It defines who we are and what we stand for. It also gives us a sense of purpose, as we collectively work to serve our customers and help our company grow.
As we transform our company for the future, our people remain the key to our long-term success. From employee development programs to National Training Conferences and industry training, Graybar is preparing the next generation of employees who will carry our company forward.
Graybar’s Summer Internship and Leadership Trainee Programs continue to provide real-world experience for those beginning their careers in distribution. Our internship program was recognized by Vault as one of the 150 Best Internships, earning high marks in sales, marketing, communications and networking opportunities. Graybar’s commitment to leadership excellence also earned a Silver Stevie Award for Great Employers in the Leadership Development category.
Graybar is committed to the long-term viability of the construction industry. We are a Premier Partner with the National Electrical Contractors Association (NECA) and a Platinum Partner with the Independent Electrical Contractors (IEC). We also support ELECTRI International and its mission to conduct research and education for the construction industry. In addition, Graybar is addressing the industry’s skilled labor challenges through its Construction Trades Scholarship Program, which was launched in 2019. Last year, the company increased the award to $2,500 to encourage greater interest in the trades.
Graybar is actively involved in other industry organizations, including the National Association of WholesalerDistributors (NAW), the National Association of Electrical Distributors (NAED), the National Electrical Manufacturers Representatives Association (NEMRA) and the National Electrical Manufacturers Association (NEMA), among others. In 2026, Kathy Mazzarella is serving as chair of the NAW Board of Directors.
In addition to supporting our industry, we also invest in our communities. Last May, a devastating tornado swept through Graybar’s hometown of St. Louis, displacing countless families and causing widespread destruction. In response, Graybar donated $400,000 to disaster relief efforts that addressed both immediate needs and long-term recovery for affected residents. Graybar teamed up with several customers and industry organizations to provide relief through ReConnect STL, which was selected by the St. Louis Business Journal as a winner of its 2026 Innovation in Philanthropy Award.
Our commitment to helping one another is also embodied in the Graybar Family Foundation (GFF), which provides financial assistance to employees facing unforeseen hardship, such as natural disasters or medical emergencies. The annual Graybar Gives Back Run/Walk unites employees, retirees, friends and family to raise funds for GFF. In 2025, the event set a record, raising more than $22,800 to support employees in need.
Graybar’s Women Influencing Graybar’s Success (WINGS) organization provides opportunities for networking, professional development and community involvement. Last year’s WINGS networking breakfast at the fall National Training Conference was the largest gathering in the history of the organization, underscoring the vital role of WINGS across the company.
In 2025, Graybar was also proud to be named one of America’s Most Trusted Companies by Forbes, one of the 100 Most Loved Workplaces by The Wall Street Journal and a US Best Managed Company by Deloitte Private and The Wall Street Journal. Additionally, Graybar earned a place on Selling Power’s 60 Best Companies to Sell For list for the 20th consecutive year and was recognized on Fortune’s World’s Most Admired Companies list for the 24th year. And we were named a Top Workplaces USA Award winner for the fifth consecutive year.
BOARD OF DIRECTORS
KATHLEEN
BRIAN
